OREANDA-NEWS. Sumitomo Corporation announced that Sumitomo has entered into Heads of Agreement for sale and purchase of liquefied natural gas (hereinafter referred to as "LNG") (hereinafter referred to as "LNG HoA") with Kansai Electric Power Co., Inc. under which Sumitomo has agreed to sell 0.8 mtpa of LNG from the U.S. Cove Point LNG Project (hereinafter referred to as "the Project").

The Project will involve a construction of a new natural gas liquefaction facility at the existing Cove Point LNG Terminal currently in operation as a LNG receiving terminal, in Maryland (MD) USA planned by Dominion Cove Point LNG, LP (hereinafter referred to as "Dominion"). The contracted quantity for the liquefaction service of the Project is estimated to be approximately 4.6 mtpa. After several processes such as issuance of an authorization granted from the U.S. Department of Energy to export LNG to non-FTA countries, the Project will start operation in mid to late 2017. Sumitomo has entered into LNG HoA with KEPCO, given the fact that Sumitomo, through Pacific Summit Energy LLC, a wholly owned subsidiary, has signed the Terminal Service Agreement with Dominion for liquefaction service to liquefy natural gas to LNG, the volume of 2.3 mtpa for export.

Sumitomo will endeavor to export LNG from the USA, the world's largest natural gas producer, in order to contribute to a security of LNG supply for Japan.